Volkswagen is likely to opt for Huntsville, northern Alabama, instead of Chattanooga, Tennessee, for its new US car plant, it was reported on Friday.

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Automotive News Europe said its Automobilwoche sister publication had obtained the information from “sources with direct contact to management board members”.


Volkswagen has a plant in Mexico and last operated a factory in Pennsylvania in the 1980s.


It wants to again operate a plant in the US as a hedge against the high euro vs the dollar and to give it greater flexibility in a key export market.

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